Ethereum (ETH) has struggled to regain its footing since diverging above the $1,660 resistance. But despite this, Ethereum is poised to outperform Bitcoin (BTC)/
Will Ethereum (ETH) Continue to Fall?
Technical analysis on the daily time frame shows a mixed outlook for Ethereum price action. Initially, ETH price broke out of the ascending parallel channel and confirmed support on February 13 (green symbols). It then made a new yearly high of $1,742 on Feb. 16.
However, prices have dropped since then. The decline indicates that the previous breakout was only a deviation (red circle) above the $1,660 resistance area.
Currently, ETH price is approaching the channel resistance line again. However, there is strong support at the channel support line and the .5 Fib retracement level at $1,408.
Since the daily RSI is declining, a drop to this level is most likely.
On the downside, reclaiming the $1,660 resistance will invalidate this bearish forecast. In this case, ETH price may rise to $2,000.
ETH/USDT daily chart | Source: TradingView
Similar to the price action, the news for Ethereum has been mixed.Network upgrades that bring various improvements to the Ethereum ecosystem have been deployed March 2.
The upgrade will improve decentralized application and smart contract functionality.The Ethereum burn rate has dropped sharply since mid-February, likely due to attention To the declining NFT market.Finally, since the SEC has not released Decide Regarding the classification of Ethereum, the token risks being considered a security. In this case, it will be subject to more legal regulations.
Ethereum (ETH) Outperforms Bitcoin (BTC)
While the ETH/USDT chart is giving mixed results, the price action and indicators for the ETH/BTC pair are showing clear bullish signals.
First, the price formed a double bottom pattern above the support line of the descending channel. A double bottom is considered a bullish pattern, and channels often lead to breakouts. Moreover, the whole movement is combined with a bullish divergence on the daily RSI (green line).
Therefore, the price may rise towards the resistance line of the channel and the £0.078 area.
On the downside, a breakdown of the channel would invalidate this bullish outlook and could trigger a drop to the 0.618 Fib Retracement support at £0.063.
ETH/USDT daily chart | Source: TradingView
All in all, while the trend for the ETH/USDT pair is unclear, the trend for ETH/BTC is bullish. The price is expected to rise to the confluence of the resistance at GBP 0.078. A breakdown of the channel would invalidate this outlook and could lead to a drop to £0.063.
You can see the token price here.
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According to Beincrypto
